Tata Technologies reports sequential revenue growth, strategic acquisition in Q2 FY26

Tata Technologies reported 6.4% sequential revenue growth in Indian rupees for Q2 FY26, reaching INR 1,323 crores. The services business, contributing 77% of total revenue, grew 5.1% sequentially to INR 1,013 crores. Aerospace and Industrial Heavy Machinery verticals saw a 14% sequential revenue increase in US dollar terms, while the automotive vertical recorded a 0.5% sequential increase in US dollar terms.

The technology solutions business grew 10.6% quarter-over-quarter, bolstered by strong performance in both education and products segments, with deferred education projects going live and new deals closed. Despite a reported EBITDA margin of 15.7%, the normalized EBITDA margin stood at 16.4% after adjusting for one-off cyber incident-related expenses of over INR 10 crores.

A key strategic highlight was the definitive agreement to acquire ES-TEC, which will strengthen the company's European presence and automotive engineering capabilities, providing direct access to Volkswagen. The company anticipates some moderation in Q3 due to seasonal factors and temporary headwinds related to customer operations, followed by a sharp recovery in Q4.